Pan American Silver Targets Up to $1 Billion in Shareholder Returns in 2026 Through Enhanced Shareholder Return Framework - Seite 2

A Disciplined Approach to Capital Allocation

The Company’s capital allocation priorities are:

1. Sustaining Capital and Operational Excellence
   • Continued investment in Pan American’s long-life assets across the Americas to ensure safe, reliable, and efficient operations. Ongoing brownfield exploration supports reserve replacement and mine life extension.
2. Financial Strength and Balance Sheet Flexibility
   • Maintaining a strong balance sheet and ample liquidity to support resilience through market cycles and preserve strategic flexibility.
3. High-Return Organic Growth Investments
   Advancing a pipeline of high-quality projects, including:
   • The La Colorada Skarn Project, expected to enhance long-term silver production, margins, and free cash flow.
   • The optimization and potential expansion of the long-life Jacobina mine, which hosts our largest gold mineral reserves and resources.
   • The extension of the shaft at Bell Creek as well as advancing exploration opportunities to extend and expand production at Timmins.
4. Shareholder Returns
   An enhanced Shareholder Return Framework that:
   • Provides a base annualized dividend of approximately $305 million for 2026, delivering consistent returns. Pan American has raised the dividend three times over the course of 2025, with the last quarterly dividend declared on May 5, 2026 of $0.18 per common share, representing one of the most attractive dividend payouts amongst primary silver producers.
   • Allocates excess free cash flow to share repurchases, thereby reducing the number of Pan American’s outstanding common shares and driving long-term value per common share by increasing each shareholder’s ownership in the Company’s world-class asset base and improving per-share metrics.
   • Grows the dividend per share by reducing the number of Pan American common shares outstanding through ongoing share repurchases under the NCIB program.

Built on a Strong and Distinctive Foundation

Pan American’s approach to capital allocation is supported by:

• Leading silver exposure with the largest silver mineral reserves amongst primary silver producers, offering direct leverage to prices.
• Strong free cash flow generation, driven by disciplined cost management and operational performance. Attributable Free Cash Flow⁽¹⁾⁽²⁾ was $488 million in the first quarter of 2026, inclusive of our expected 44% share from Juanicipio’s free cash flow.
• A robust balance sheet and liquidity position, providing flexibility across commodity cycles. As at March 31, 2026, Pan American reported record cash and short-term investments of $1.6 billion, excluding $199 million of cash attributable to the Company's 44% interest in Juanicipio, and total available liquidity⁽¹⁾ of $2.4 billion.
• A high-quality organic growth pipeline, supporting long-term value creation.

With Pan American's unique leverage to silver, strong financial position, and world-class, high-quality organic growth pipeline, the Company is well positioned to continue generating attractive returns for shareholders.

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